As the Deputy will be aware Finance Bill 2012 contains two proposed measures aimed at reducing the cost to the State of the "legacy" property-based tax incentive schemes and bringing it to an end in a shorter time period. These measures consist of a property relief surcharge, which will take effect from 1 January 2012 and a cap on property-based Accelerated Capital Allowance Schemes to be introduced from 1 January 2015. The Exchequer yield from the property relief surcharge will depend on the level of use of the "legacy" reliefs by individuals falling within the ambit of the measure thus it is difficult to be certain on the amount that it will generate. However, I have no reason at this stage to change the figure of €15m savings in a full year, which I announced at Budget time.
The property relief surcharge and the 2015 cap on accelerated capital allowances, which limit property tax reliefs that benefit high income earners, demonstrate this Government's commitment to developing a fairer tax code.
These provisions reflect the findings of the Economic Impact Assessment on the measures proposed by the previous Government for restricting the property-based "legacy" tax relief schemes. The Impact Assessment, which was published with the Finance Bill, considered the impacts of these proposals and highlighted, in particular, the vulnerability of small investors to insolvency if they lost these reliefs. The Economic Impact Assessment report concludes that relief to small scale investors should not be restricted in the current climate but that there is scope for larger investors to contribute more.
This Government believes that large scale investors in property that attracts tax reliefs can and should make more of a contribution. The property relief surcharge will therefore be imposed on investors with an annual gross income of €100,000 and over. It is also estimated that the change to the high earners restriction in 2010 will yield additional taxes from high earners who benefit from tax reliefs.